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Thursday, November 23, 2017
After Auditor's Report, Department of Public Safety Agrees to Close Revolving Fund
By Hawaii State Auditor @ 11:59 PM :: 4689 Views :: Ethics, Law Enforcement

Auditor’s Summary Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Public Safety

From Hawaii State Auditor Report No. 17-11

One revolving fund did not meet criteria

OUR REVIEW OF SIX SPECIAL FUNDS, three revolving funds, four trust funds, and five trust accounts of the Department of Public Safety (PSD) found one revolving fund did not met criteria and should be closed.

Section 23-12, Hawai‘i Revised Statutes (HRS), requires the Auditor to review all existing special, revolving, and trust funds every five years. Reviews are scheduled so that each department’s funds are reviewed once every five years. Although not mandated by statute, we included trust accounts as part of our review. This is our fifth review of PSD’s revolving funds, trust funds, and trust accounts. It is our first review of PSD’s special funds.

We used criteria developed by the Legislature and by our office based on public finance and accounting literature. For each fund, we present a five year financial summary, the purpose of the fund, and conclusions about its use. We did not audit the financial data which is provided for informational purposes. We do not present conclusions about the effectiveness of programs or their management, or whether the programs should be continued.

Reporting shortfall

WE ALSO NOTED that PSD did not file statutorily required reports for non-general funds and for administratively created funds. Accurate and complete reporting will greatly improve the Legislature’s oversight and control of these funds and provide increased budgetary flexibility.

Agency response

PSD GENERALLY AGREED with our findings and will take appropriate action to close the revolving fund that did not meet criteria. PSD will also comply with reporting requirements.

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